Insurance companies are in business to make money. As such, they need to minimize their financial risk as much as possible. When an accident occurs that results in a claim being filed with the insurance company, there is always the possibility that the insurance company may deny the claim for one reason or another.
Why Insurance Companies May Try To Deny Claims
The most common reason an insurance company would deny a claim is if it believes that the policyholder was engaging in risky behavior when the accident occurred or was not following safety guidelines established by the insurer. Furthermore, if it appears that the policyholder has misrepresented information on their application for coverage, this can lead to a denial of a claim as well. Additionally, the claim may be denied if fraud or intentional property destruction is suspected.
Policyholders can also be denied a claim if they have allowed their coverage to lapse. This means the policyholder has yet to keep up with payments. Furthermore, even if the policyholder is current on their payments, an insurance company may deny a claim if it believes that the policyholder’s conditions were not fulfilled at the time of the accident.
Finally, some insurance companies may also deny a claim due to what is known as “late reporting” or “delay in reporting.” This occurs when a policyholder takes too long to report an incident and submit a claim for damages after an accident.
Work Wtin An Attorney For Insurance Claims
It’s important to remember that while insurance companies may deny a claim for various reasons, policyholders have the right to dispute these denials. It is important to work with an attorney when dealing with insurance companies. Insurance companies are making money, not helping you get the compensation or benefits you deserve. An experienced attorney can represent your best interests and help you ensure that all of your legal rights are properly protected.
An attorney can also negotiate on your behalf with insurance companies and ensure that any settlement is fair and equitable for both parties. A good attorney will be able to guide applicable laws and regulations to help ensure a favorable outcome for their client. They understand how different insurance providers function, allowing them to better advise their clients on a proper course of action.